Euro presses support amid conflicting technical signals 28/10/2022

The single European currency reversed the bullish trend despite the European Central Bank raising interest rates by 75 basis points to return to stability below 1.0000.

On the technical side, we find the 50-day simple moving average still carrying the price from below, supporting the possibility of a rise. On the other hand, stochastic provides negative signals and misses bullish momentum.

With the conflicting technical signals, we prefer to monitor the price behavior of the pair to be in front of one of the following scenarios:

For the bullish bias to return, we need to witness a consolidation above the psychological barrier resistance of 1.0000, which might initially be a catalyst for a visit to 1.0060/1.0050.

To get the official bearish trend, it must break 0.9950 to target 0.9875 and 0.9840, respectively.

Note: Trading on CFDs involves risks. Therefore, all scenarios may be possible. This article is not a recommendation to buy or sell but rather an explanatory reading of the price movement on the chart.

S1: 0.9930	R1: 1.0065
S2: 0.9875	R2: 1.0150
S3: 0.9795	R3: 1.0205